Final Environmental Assessment and FONSI for the Coral Reef Conservation Grant Program

This document is a programmatic environmental assessment (PEA) for the United States (U.S.) National Oceanic and Atmospheric Administration (NOAA) Coral Reef Conservation GrantsProgram (CRCGP). It describes in general terms the planned actions of the CRCGP and potential impacts resulting from those actions.

Because the award of federal funds for the United States (U.S.) NOAA’s Coral Reef Conservation Grant Program (CRCGP) sponsored projects is a major federal action, the CRCGP must comply with the National Environmental Policy Act (NEPA) of 1969, the Council on Environmental Quality’s regulations for implementing NEPA (Title 40 Code of Federal Regulations [CFR] parts 1500 through 1508), and NOAA Administrative Order (NAO) 216-6, which describes NOAA's policies, requirements, and procedures for complying with NEPA and the CEQ regulations. In accordance with these requirements, NOAA, as the lead federal agency, has prepared this PEA in order to assess the potential environmental impacts of: 1) the CRCGP; 2) its annually issued Program Guidelines; and 3) the expected types of projects or grant awards to be funded under the CRCGP.

Consequently, this PEA will be used to streamline the overall CRCGP NEPA review process, thus eliminating duplicative documentation. The PEA will be reviewed every five years in order to ensure that its impact analyses remain current. If not, the PEA will be revised as needed. Additionally, each proposed project will be reviewed in order to determine whether or not its potential environmental impacts have been addressed in this PEA. This review will be conducted by the completion of the NEPA Project Review Checklist contained in Appendix C of this PEA. If this review determines that the proposed project type and its environmental impacts are adequately covered in the PEA, no further NEPA documentation will be completed for that project and the completed Checklist will be included with the other records for that grant award. If the project type or impacts are not adequately covered in this PEA, the proposed project will be the subject of an individual NEPA review. Depending upon the degree of the project’s potential impacts, this review could involve either the preparation of a categorical exclusion (CE) memorandum, an environmental assessment (EA), or an environmental impact statement (EIS).

1.1 Background

The U.S. Department of Commerce (DOC), NOAA is responsible for implementation of CRCGP, as authorized under section 204 of the Coral Reef Conservation Act of 2000 (Act, 16 U.S.C. 6401, 6403, P.L. 106-562 enacted December 14, 2000, Appendix D).

The stated purposes of the Act are:

• To preserve, sustain and restore the condition of coral reef ecosystems;
• To promote the wise management and sustainable use of coral reef ecosystems to benefit local communities and the Nation;
• To develop sound scientific information on the condition of coral reef ecosystems and the threats to such ecosystems;
• To assist in the preservation of coral reefs by supporting conservation programs, including projects that involve affected local communities and non-governmental organizations;
• To provide financial resources for those programs and projects; and
• To establish a formal mechanism for collecting and allocating monetary donations from the private sector to be used for coral reef conservation projects.

Under section 204 of the Act, the Secretary of Commerce (Secretary) is authorized, through the NOAA Administrator (Administrator), to provide matching financial assistance awards for coral reef conservation projects through the development and implementation of the CRCGP (16 U.S.C. 6403). Section 204(j) of the Act subsequently requires the Administrator to promulgate guidelines for implementing the Program. Section 209 authorizes up to $8,000,000 for projects under the grant Program in each of the 2001 through 2004 fiscal years. Approximately $5,000,000 will be distributed under the CRCGP in fiscal year 2005.

1.2 Authorized Use of CRCGP Funding

The CRCGP funds and distributes grants under six categories that include:

1. State and Territory Coral Reef Ecosystem Management (applicants: state and territory management agencies) for conservation and management activities;
2. State and Territory Coral Reef Ecosystem Monitoring (applicants: state and territory management agencies) for ecosystem monitoring and/or assessment activities;
3. Coral Reef Ecosystem Research (applicants: academia, nongovernmental organizations [NGOs], individuals) to develop sound scientific information on the condition of coral reef ecosystems or threats to such ecosystems;
4. General Coral Reef Conservation (applicants: academia, NGO’s, local and tribal governments, community organizations, etc.) to implement cooperative coral reef conservation, protection, restoration, research, or education projects that complement or fill gaps in state and territorial government activities;
5. Projects to Improve or Amend Coral Reef Fishery Management Plans (FMPs) (applicants: South Atlantic, Caribbean, Gulf of Mexico, and Western Pacific Fishery Management Council [FMC]s) to obtain information needed to improve or amend FMPs for coral reef species; and
6. International Coral Reef Conservation (applicants: international governments, NGOs) to support coral reef conservation activities outside of the U.S.

1.3 CRCGP Grant Process and Process for Programmatic NEPA Compliance

Each year the CRCGP publishes Annual Fiscal Year Guidance indicating available funds, eligibility criteria, funding categories, and information required of applicants. There are a wide variety of individuals and organizations that are authorized to apply for specific grants in the various funding categories. Projects are awarded through grants and cooperative agreements, as a funding mechanism to preserve, sustain and restored coral reef ecosystems, promote wise management and sustainable use, develop sound scientific information, and assist in preservation of reefs by supporting conservation programs undertaken by government agencies, NGOs, educational institutions, and community groups. The CRCGP grant process generally includes the following steps:

An announcement of the opportunity for Federal funding is issued, which includes requirements for information pertaining to NEPA compliance.

• Organizations prepare and submit pre-proposals for project grants, which should include enough detail for NOAA to make a NEPA compliance and documentation determination.
• The CRCGP evaluates the applications through a peer-review process and internal NOAA panel, including the information pertaining to NEPA compliance, using a standard evaluation worksheet.
• The CRCGP arrives at a decision on a suite of possible projects to recommend for funding and requests that these applicants submit a revised proposal.
• The CRCGP staff responsible for each of the six grants program categories use a NEPA checklist (see Appendix C) to determine if the project and potential impacts are addressed in this PEA. If so, no further environmental review is conducted other than completion of the NEPA checklist. If the project is not addressed in the PEA, and environmental impact review such as a CE, EA, or EIS will be completed as appropriate.
• The CRCGP staff work with each applicant to prepare the appropriate level of NEPA documentation (CE, EA, or EIS, as appropriate), if they have an application that falls outside of the PEA.
• Each award may have Special Award Conditions (SACs) that the CRCGP imposes on grantees with respect to environmental compliance.

Once the CRCGP receives all preproposals and the deadline for submission of applications has expired, the CRCGP evaluates each application using an independent merit-based review process and an internal NOAA CRCGP panel using a project proposal evaluation worksheet. The worksheet helps score each application against a set of standard criteria, including importance and applicability of the proposal, technical and scientific merit, overall qualifications of the applicants, project costs, and education and outreach. The worksheet corresponds closely with the announcement of the opportunity for Federal funding and has a specific reference under the section pertaining to technical and scientific merit that allows the CRCGP to evaluate the adequacy of the information submitted to ensure NEPA compliance.

The CRCGP decides on a suite of projects to recommend for funding, based on the evaluation scores generated by the project proposal evaluation worksheets. The approval of the CRCGP awards and the disbursement of funds are federal activities subject to authorities such as the NEPA, Endangered Species Act, federal consistency provisions of the Coastal Zone Management Act, the Essential Fish Habitat (EFH) provisions of the Sustainable Fisheries Act (SFA), Coastal Barrier Resources Act and other environmental provisions. As the federal funding agency, NOAA is responsible for complying with these authorities before disbursing funds.

The CRCGP then uses the NEPA checklist to serve as a guide in choosing the appropriate NEPA compliance tools and decision document, and examines projects in respect to this PEA. If the impacts of those activities are addressed in this PEA, the CRCGP can document those findings in the NEPA checklist. After a thorough vetting including review by NOAA's Office of General Counsel, a determination is made that the grant activities fall under the provisions of this PEA or require further environmental review. If the impacts of those activities, or a portion thereof, are not adequately addressed in the PEA, the applicant and the CRCGP would conduct the appropriate NEPA analyses and documentation using this document and the PEA as cornerstones for compliance. Such NEPA analyses could include the use of a CE, preparation of an EA, adoption of an EA completed by another Federal agency, or preparation of an EIS. As of February 2005, no grant awards have been determined to be other than CE's and merited no further environmental review or mitigation strategy.

NOAA began the CRCGP in 2002 to: 1) improve the understanding of coral reef ecosystems and natural and anthropogenic processes that determine their health and viability; and 2) quickly reduce the adverse impacts of human activities on coral reef ecosystems. In fiscal year (FY) 2002, the Program awarded $5,482,021 in grants; of this amount, NOAA contributed $5,132,021, and the Department of the Interior, Office of Insular Affairs (DOI/OIA) provided $350,000 to support State and Territory Coral Reef Management grants. In FY 2003, NOAA awarded $4,636,719, and DOI/OIA again provided $350,000, for a total of $4,986,719. In FY 2004, awards totaled $4,951,566 with $2,388,582 in non-Federal match (See summary Table 1). The program anticipates awarding 44 grants during FY 2005, ranging from $16,000 to $525,000, and that funding of up to $4,851,231 would be available for coral reef conservation projects. The CRCGP has historically awarded the following past grants:

• FY 2004: 50 awards ranging from $15,000 to $525,000 for a total of $4,951,566 million
• FY 2003: 46 awards ranging from $10,000 to $750,000 for a total of $4,636,719 million
• FY 2002: 43 awards ranging from $23,420 to $750,000 for a total of $5,132,021 million

To date, all grant awards have been reviewed for compliance with NEPA and other environmental requirements and standards and there has been no indication of significant adverse impacts associated with implementation. Therefore, a more generic and programmatic assessment is being conducted to determine whether a Finding of No Significant Impact is justified for this particular program and for typically funded projects. This will allow for a more streamlined grant program that facilitates the dispersion of funding for the intended purposes of the CRCGP in the most expeditious manner consistent with the emergency to which the program is responding.

1.4 Federal Involvement

The CRCGP is administered through two Federal agencies including the U.S. Department of Commerce (DOC)/NOAA and its line offices, and the DOI/OIA that deal with U.S. Trust Territories and Freely Associated States.

1.4.1 NOAA Line Office Activities

National Ocean Service

The National Ocean Service (NOS) works to further understanding of coral reef systems through coral mapping, monitoring and research activities. NOS scientists study the most effective management techniques and initiate education efforts. Offices in NOS that participate in the funding and management of the grants include: a) Office of Ocean and Coastal Resource Management (OCRM); b) National Centers for Coastal Ocean Science (NCCOS); c) Office of Response and Restoration (ORR); and d) International Affairs Office (IAO).

Oceanic and Atmospheric Research

The Office of Oceanic and Atmospheric Research (OAR) works to increase the understanding of coral reef ecosystems by conducting high-quality, peer-reviewed research, developing and implementing sophisticated and extensive coral reef monitoring networks, initiating and implementing outreach and education efforts, and facilitating professional dialogue between coral reef experts. Grants are provided through NOAA’s Undersea Research Program (NURP).

National Marine Fisheries Service

The National Marine Fisheries Service (NMFS) works to reduce and control the effects of overfishing, coral damage and marine pollution, and leads efforts to map and monitor U.S. coral reefs. Grants are provided through the Habitat Conservation Office (HC).

1.4.2 Department of the Interior

Office of Insular Affairs

The OIA provides technical and financial assistance to support management and protection of coral reefs in the U.S. Virgin Islands and the Pacific islands of Guam, American Samoa and the Commonwealth of the Northern Mariana Islands (CNMI). (DOI/OIA jointly administers grants under the State and Territory Coral Reef Management category to the Commonwealth of Northern Mariana Islands, Guam, and American Samoa.)

1.5 Purpose and Need for Action

The purpose of the proposed action is to support local and national partnerships with resource management agencies, educational institutions, non-government organizations and community groups through which coral reef conservation actions are realized. NOAA recognizes the significant role that coral reef user groups and resource management agencies play in coral reef conservation and management and acknowledges the importance of local and regional efforts in protecting coral reefs. These project types are successful because they have significant support of resource management agencies in federal, state and territorial waters within the jurisdictions that have coral reefs, as well as support of stakeholders and community groups, and often depend upon involvement and participation of all user groups and management entities for successful implementation of conservation actions. NOAA is interested in strengthening the development and implementation of technically sound coral reef conservation projects. NOAA anticipates maintaining the current focus of the CRCGP by continuing to support local, regional and national efforts to develop stewardship and a conservation ethic for the nation's coral reef resources

For more than a decade, scientists, policy makers, and national leaders have been expressing a growing concern over the deterioration of coral reef ecosystems. The Coral Reef Conservation Act of 2000 set in motion a program to help address the concerns expressed and widely recognized as real and serious in nature. Substantial funding has been annually appropriated to implement a program designed to improve scientific understanding and taking measures to afford greater protection to these fragile ecosystems. It is the environmental consequences of the federal activities associated with the implementation of the Act that require review.

State of the Reefs - The Need for Immediate Action

Coral reef ecosystems are in serious jeopardy, primarily due to the impacts of a variety of human activities and natural events. Coral reefs are threatened by:

• Over-exploitation and destructive fishing practices;
• Pollution and sedimentation associated with coastal development, deforestation, and agriculture;
• Habitat loss from dredging and shoreline modification;
• Vessel groundings and other direct physical impacts;
• Invasive species, disease outbreaks, and other impacts associated with climate change such as coral bleaching, increased storm frequency and changing sea level.

By some estimates, 27 percent of the world's reefs have effectively been lost, with 16 percent attributed to the massive climate-related coral bleaching event of 1998 and 11 percent lost due to human impacts (Wilkinson, 2000). The rapid decline and loss of these valuable marine ecosystems have significant social, economic, and environmental consequences in the U.S. and around the world.

Because of the large amount of degradation which has occurred and is projected to occur in the absence of concerted action, the International Coral Reef Initiative (ICRI) was launched in 1994 as a partnership among governments, non-governmental and international organizations, multilateral development banks and private sector interests aimed towards conservation, sustainable use and effective management of coral reefs and related ecosystems (include seagrass beds and mangrove forests). The United States served as the First Secretariat for ICRI and helped develop a Call to Action and a Framework for Action that encouraged participants to reduce threats from human-related impacts through: 1) improved and sustained management practices; 2) increased national and local capacities for coral reef ecosystem management; 3) increased political support for managing coral reef ecosystem; and 4) the sharing of existing important and new information related to maintaining the health of coral reef ecosystems. The following measures were endorsed to accomplish these goals:

Coastal Management

• Incorporate integrated coastal management measures into local, national, and regional coastal development plans and projects, and support their long-term implementation. These measures will serve as the framework for achieving the sustainable use of, and maintaining the health of, coral reefs and associated environments.
• Develop coral reef initiatives (regional, national and/or local). These should use an ecosystem-based, integrated approach that encourages participation and includes programs for community-based management or co-management of reef resources.

Capacity Building

• Establish regional networks to share knowledge, skills, and information.
• Develop and support educational and informational programs aimed at reducing adverse impacts of human activities.
• Establish information exchanges with stakeholder communities
• Improve developing nations' access to bilateral, multilateral, and other forms of financial and technical support for coral reef management.

Research and Monitoring

• Use regional networks to achieve better coordination and cooperation among national research programs.
• Promote linkages between regional and global research and monitoring networks, such as Caribbean Coastal Marine Productivity, Pacific Coastal Marine Productivity, and Global Ocean Observing System.
• Support research and monitoring programs, projects, or activities identified as essential to managing coral reef ecosystems for the benefit of humankind.
• Promote the development and maintenance of a global coral reef monitoring network. (ICRI “Call to Action,” 1995).

In response, many countries have developed national initiatives based on making improvements to science, management, research and monitoring.

The U.S. is one of many nations around the world working to halt the coral reef crisis and protect, restore, and promote the sustainable use of coral reef ecosystems through the U.S. Coral Reef Task Force (USCRTF) (http://www.coralreef.gov/taskforce/indix.html). The USCRTF was established in June 1998 through Executive Order #13089 on Coral Reef Protection to lead the U.S. response to this growing global environmental crisis. The USCRTF is responsible for overseeing implementation of the Executive Order, and developing and implementing coordinated efforts to: 1) map and monitor U.S. coral reefs; 2) research the causes and solutions to coral reef degradation; 3) reduce and mitigate coral reef degradation from pollution, overfishing and other causes; and 4) implement strategies to promote conservation and sustainable use of coral reefs internationally. The USCRTF includes leaders of twelve federal agencies, seven U.S. states and territories, and three freely associated states. The USCRTF has been instrumental in building partnerships and strategies for on-the-ground action to conserve coral reefs and guides and supports activities under the U.S. Coral Reef Initiative (USCRI). The Task Force works in cooperation to support national and local action strategies and plans with State, territorial, commonwealth, and local government agencies, NGOs, the scientific community, and commercial interests.

From mapping and monitoring to managing reef resources and removing harmful debris, the NOAA Coral Reef Conservation Program (CRCP) addresses the priorities laid out in both the National Action Plan (http://www.coralreef.gov/taskforce/nap.html) to Conserve Coral Reefs and the National Coral Reef Action Strategy (http://coris.noaa.gov/activities/actionstrategy/actionstrategy.html#1). The CRCP supports effective management and sound science to preserve, sustain and restore valuable coral reef ecosystems to help fulfill NOAA's requirements under a number of mandates, including the Coral Reef Conservation Act of 2000. The CRCP also serves as the Secretariat for the USCRTF. NOAA and the DOI serve as co-chairs of the USCRTF.

Table 2 (Turgeon, et. al., 2002), which was prepared by the USCRTF in their National Action Plan to Conserve Coral Reefs, summarizes the problems and the degree of concern experts have attributed to the natural and anthropogenic pressures on coral reef ecosystems. This represents a considerable effort by the USCRTF to identify the problem areas that need to be addressed.

Action is needed on a wide variety of fronts to address the coral reef crisis, especially on issues of global proportions such as the impacts of bleaching, increasing coastal development, and persistent overfishing of reef systems. The CRCGP serves as one means to address this crisis.

1.6 Guidelines, Projects and Review Requirements

This EA addresses NEPA compliance at two levels: 1) overall program implementation; and 2) issuance of future financial assistance through grant awards. It covers two sets of actions: guidelines to implement the program; and issuance of financial assistance awards for the six major types of projects selected for funding under the program.

1.6.1 Issuance of Program Guidelines

In developing the CRCGP, NOAA used several existing grant programs and mechanisms within the agency to meet the various geographic, project, and applicant eligibility criteria established in the Act. NOAA consulted with the various entities identified in section 204(j) of the Act, and subsequently developed the Proposed Coral Reef Conservation Grant Program Implementation Guidelines (Proposed Guidelines) for Fiscal Years 2002 through 2004 (16 U.S.C. 6403(j)). The Proposed Guidelines were published in the Federal Register for public review and comment on December 10, 2001. The final Coral Reef Conservation Grant Program Implementation Guidelines (Guidelines, see Appendix E for pertinent parts) were published in the Federal Register on April 19, 2002 (67 FR 19396).

The Guidelines are intended to provide a general framework, in accordance with the Act, on Program elements including applicant and activity eligibility, the application process, and the proposal review process. The Guidelines stipulate that Federal funds for any coral conservation project funded under the Program not exceed 50 percent of the total costs of the project. The Act authorizes the Secretary to waive all or part of the matching requirement if the Administrator determines that the project meets the following two requirements (16 U.S.C. 6403(b)(2)):

1. No reasonable means are available through which an applicant can meet the matching requirement, and
2. The probable benefit of such project outweighs the public interest in such matching requirement.

In accordance with 48 U.S.C. 1469a(d), the Guidelines also specify that the Program may waive any requirement for local matching funds for any project under $200,000 (including in-kind contributions) to the governments of Insular Areas, defined as the jurisdictions of the U.S. Virgin Islands, Guam, American Samoa, and CNMI. In most cases, the match requirement has been waived as a result of severe budget constraints facing the U.S. Territories.

To implement the Program, the Guidelines establish that NOAA will publish in the Federal Register annual funding guidance soliciting project proposals pursuant to the Guidelines. Each fiscal year, beginning with 2002, NOAA has published Coral Reef Conservation Grant Program Funding Guidance (Guidance) to solicit proposals for coral reef conservation activities, subject to the availability of funds.

The Coral Reef Conservation Grant Program FY 2002 Funding Guidance was published in the Federal Register on April 19, 2002 (67 FR 19403), and the Coral Reef Conservation Grant Program FY 2003 Funding Guidance was published in the Federal Register on January 17, 2003 (68 FR 2513). Both Federal Register Notices included specific information for each program category on eligibility criteria, funding availability, proposal submittal and selection dates, and detailed application requirements and application evaluation criteria. These criteria, along with each year's Congressional funding appropriation, guide NOAA in determining the specific projects that are awarded grants of financial assistance. Priorities for funding may change annually.

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